One institution carries the long-term responsibility
The proposal establishes the National Affordable Housing Trust as the organisation that commissions, owns and lets the homes. It takes long leases of public land, raises construction finance through bonds and appoints contractors to deliver against a published specification.
The contractor is paid for construction. The Trust remains responsible for the homes after the contractor leaves: allocations, rent collection, maintenance, safety, repairs and the obligations owed to residents and bondholders. The institution is designed to continue across successive developments and changes of government.
A charitable purpose shapes the organisation
The proposed legal form is a charitable community benefit society, with registration as a provider of social housing. Its purpose is to provide housing for households unable to obtain suitable, affordable housing through the market.
That purpose governs the use of income and assets. The proposal requires surpluses to support the housing mission and an asset lock to keep residual assets within charitable purposes if the organisation is dissolved. Bondholders receive the payments attached to their investment; purchasing a bond does not give them ownership of a home.
The eligibility rules connect that purpose to each letting. The proposal measures affordability against household income, with rent no higher than 33% of net income at entry. Its wider income range requires evidence of housing need in the market each development serves. The charitable objects and allocation rules must be settled together.
| Public landowner | The Trust | Resident |
|---|---|---|
| Retains the freehold and grants a long land lease. | Holds the leasehold housing assets and the landlord’s continuing obligations. | Holds a residential lease and pays rent for the home. |
The public freehold and the Trust’s leasehold interest are distinct. The homes’ long-term protection depends on the governing rules, lease terms and applicable law.
Governance makes the responsibility accountable
The proposal specifies a board of at least seven trustees, including at least two with relevant housing, finance or construction qualifications. Trustees serve no more than two three-year terms. A Resident Advisory Panel gives people living in the homes a formal route to be heard on housing management, maintenance and allocation.
Annual audited accounts show the organisation’s financial position. Conflict-of-interest rules govern dealings involving trustees, staff and connected people. Those arrangements belong in the governing documents and operating procedures from the outset.
The Trust specifies and procures construction rather than relying on an in-house building workforce. Its duties include selecting competent contractors, checking delivery and retaining the contractual protections needed when defects occur.
Rent carries defined financial obligations
Under the detailed structure in §13.5, each development has a ring-fenced collection account and an independent security trustee. Rent supports bond service, maintenance provision and management in a defined payment order. Residual income builds the reserves described in the proposal.
The housing Trust and the security trustee have different jobs. The housing Trust owns and manages the homes. The security trustee administers the protections agreed for bondholders. Neither role removes the landlord’s obligations to residents.
This article follows the development-level structure in §13.5. The broader portfolio-pooling language elsewhere in the source needs reconciliation when the final bond documents are prepared.
Registration and charitable treatment have separate roles
Community benefit society registration is undertaken through the Financial Conduct Authority. Social housing provider registration is a separate application to the Regulator of Social Housing, which assesses the applicant’s financial position, constitution and management arrangements.
The proposal adopts both registrations. They serve different functions; society registration is not approval of the investment product or a guarantee of its return. Charitable status and tax treatment also depend on the purposes and activities actually established.
Official context: FCA — registered societies; RSH — registration guidance.
The structure to establish before delivery
The Trust described here is the proposed institution. This page does not represent it as already established, registered or approved. Chapter 20 and Appendix IX identify the decisions and legal work required before implementation.
Those include confirming that the charitable objects support the intended households, resolving the applicable rent-policy treatment, and settling the protections for the long leases. Infrastructure funding, subsidy-control treatment and the pilot’s bond subscription are separate implementation requirements.
The source describes the FCA as the principal regulator for charity purposes. The Charity Commission’s current guidance instead states that charitable registered societies have no principal regulator. This article therefore distinguishes society registration from housing regulation without repeating that attribution. See Charity Commission: Exempt charities (CC23). Official guidance checked on 28 October 2026.